AHAA Weekly Policy Report: January 14th, 2026

Table of Contents

Federal Hemp Ban Spurs Congressional Action, States Race to Adapt Regulations

The second week of 2026 brings unprecedented urgency to hemp policy as industry stakeholders confront a November 2026 federal deadline. Congress introduced bipartisan legislation to delay the ban, while states implemented aggressive regulatory responses.

AHAA tracked 11 major policy developments this week across 7 jurisdictions.

This Week's Highlights: Bipartisan delay legislation introduced. Oregon Senators reintroduce regulatory framework. New Hampshire passes legalization 208-135. Texas proposes 13,000% fee increase. New Jersey implements phased restrictions. Trump administration sends mixed signals on CBD.

Federal Executive Action

Congress Moves to Delay Hemp Product Ban

Hemp Planting Predictability Act - Introduced January 13, 2026

Representative Jim Baird (R-IN) and four bipartisan cosponsors filed legislation to delay the federal hemp ban by two years, moving the deadline from November 12, 2026 to November 12, 2028.

The bill simply amends Section 781 of the FY2026 Agriculture Appropriations Act by replacing "365 days" with "3 years" for implementation. This gives farm operations time to adjust crop rotations, prevents craft brewers and small hemp businesses from closing, and allows Congress to develop a comprehensive framework.

What's at stake: The $28.4 billion U.S. hemp industry and 300,000 jobs nationwide. Minnesota's $200 million hemp economy alone demonstrates the economic impact.

What the current ban prohibits (if it takes effect): Synthetic cannabinoids like delta-8 THC and HHC. Products with more than 0.3% total THC (including THCA). Containers with more than 0.4 milligrams THC. Many full-spectrum CBD products.

Read the full bill →

Oregon Senators Offer Regulatory Alternative to Ban

Cannabinoid Safety and Regulation Act - Reintroduced January 3, 2026

Senators Ron Wyden and Jeff Merkley reintroduced their 84-page comprehensive regulatory framework as an alternative to prohibition. The bill expands FDA authority over hemp products while keeping the industry legal.

Core framework:

Federal age minimum of 21.
Synthetic cannabinoids banned.
Serving limits: 5mg THC per serving for edibles, 50mg per container.
Mandatory FDA manufacturer registration and product testing.
Child-resistant packaging and no cartoon marketing.

Prevention funding:

$125 million for underage cannabis prevention grants through HHS.
$200 million for state cannabis-impaired driving programs.
Funding for cannabis breathalyzer research.

The approach replaces prohibition with regulation, requiring manufacturers to meet FDA standards while preserving legitimate hemp businesses and protecting them from synthetic product competition.

Read the full bill →

Trump Administration Sends Mixed Hemp Signals

President Trump's December executive order on marijuana rescheduling created contradictions with November's hemp ban. The White House directed staff to work with Congress ensuring regulated CBD access, with Medicare coverage for CBD products expected by April 2026.

Yet the administration simultaneously endorsed the spending bill's hemp ban targeting synthetic cannabinoids. The policy distinction: legitimate CBD products deserve protection, but intoxicating synthetic THC products masquerading as hemp need elimination.

What's unclear: How federal agencies will enforce the ban. Whether DOJ and DEA will aggressively pursue hemp businesses while ignoring marijuana operations. If FDA or USDA will issue preemptive guidance. Whether Congress will decline to fund enforcement as it has with state-legal cannabis.

Hemp Industry Updates

Texas Proposes Massive Fee Increases

Texas DSHS Proposed Rules - Public Comment Ends January 26, 2026

Texas health officials propose raising hemp retailer fees from $150 to $20,000 annually (13,233% increase) and manufacturer fees from $250 to $25,000 (9,900% increase).

Governor Abbott vetoed an outright hemp ban in 2025, saying the industry deserved regulation instead of prohibition. But that vetoed bill contained these exact fee levels. Industry members call the proposal a functional ban by another name.

Single-location shop owners describe $20,000 as "death by cuts" while multi-state corporations would absorb the cost easily. Lt. Governor Dan Patrick, an ardent hemp ban supporter, likely influenced the proposal.

Supporters argue the billion-dollar industry should fund regulation and address societal costs. Groups like Texans for Safe and Drug-Free Youth want even stricter measures: raising the purchase age to 25 and requiring industry funding for education, treatment, and infrastructure.

Public comment deadline: January 26, 2026. Submit comments here →

New Jersey Implements Staggered Hemp Phase-Out

NJ S4509/A6295 - Signed January 6, 2026

Governor Murphy signed comprehensive hemp restrictions with three implementation phases before leaving office January 20th.

Phase 1 (Effective January 13, 2026): $3.75 per gallon excise tax on intoxicating hemp beverages at wholesale.

Phase 2 (April 13, 2026): Retailers without Cannabis Regulatory Commission licenses must liquidate hemp-derived product inventory. Hemp beverages can only be sold by licensed alcohol retailers and CRC cannabis businesses, limited to 5mg THC per serving and 10mg per container.

Phase 3 (November 13, 2026): All intoxicating hemp beverage sales prohibited except by Class 5 cannabis retailers. Products exceeding federal definitions become cannabis items requiring CRC licensing.

Enforcement: First offense $100 fine. Second offense $1,000. Subsequent offenses $10,000.

The law also expanded retail license caps from one to three dispensaries per operator and modernized advertising rules, reducing the required audience age threshold from 71.6% to 50% over age 21.

Hemp farmers objected, saying the bill amounts to a blanket ban hurting family operations rather than targeting problematic retailers marketing to teens.

Read the full bill →

Tennessee Delays Hemp Regulations Until July

Tennessee postponed hemp regulations originally scheduled for January 1, 2026 until July 1, 2026. The delay allows state officials to review federal legislation and coordinate with other states before implementing restrictions.

The Tennessee Alcoholic Beverage Commission will assume regulatory oversight of hemp-derived cannabinoid products when rules take effect. The regulations ban products with 0.3% or higher cannabinoids (including THCa) and establish licensing, testing, age restrictions, and penalties.

Highway safety advocates support the regulations. Hemp industry groups filed lawsuits against earlier Tennessee Department of Agriculture rules, with a judge siding with industry on scope-of-authority grounds.

Tennessee's legislative session opens January 13, 2026 with limited time for additional hemp action before July implementation.

Cannabis Updates

New Hampshire House Passes Adult-Use Legalization

NH HB 186 - House Passage January 7, 2026

The New Hampshire House passed comprehensive adult-use cannabis legalization 208-135, sending the measure to the House Finance Committee.

The bill legalizes possession of 2.5 ounces for adults 21 and over and establishes a state licensing system for cultivation, processing, and retail. It requires three-fifths majority in both chambers to appear on the November 2026 ballot for voter decision.

The House also passed companion legislation allowing medical dispensaries to convert to for-profit businesses, positioning existing operators for adult-use market participation.

Senate resistance remains high. Previous legalization attempts passed the House only to die in the Senate. HB 198 passed the House 208-125 in March 2025 but was tabled by the Senate 12-10. HB 75 passed the House by voice vote but was tabled by the Senate 15-9.

Additional states advancing legalization: Indiana filed recreational marijuana legislation. Hawaii's House Judiciary Chair plans ballot measure legislation after repeated bill failures. Kansas House minority leader cites legalization as revenue source. Pennsylvania has three bills pending. North Carolina has two comprehensive reform bills. Virginia lawmakers plan adult-use sales framework. Florida groups pursue 2026 ballot placement despite 2024 defeat.

Read NH HB 186 →

Congress Clears Path for Marijuana Rescheduling

FY2026 CJS Appropriations - Released January 5, 2026

House and Senate Appropriations Committees removed language that would have blocked DOJ from reclassifying cannabis, clearing obstacles to Trump's Schedule III rescheduling plan.

The nearly $26.7 billion funding package maintains 12-year-old protections preventing DOJ from interfering with state medical cannabis laws (use, distribution, possession, cultivation). Adult-use programs remain unprotected. Idaho, Kansas, Nebraska, and American Samoa are explicitly excluded from medical protections.

GOP Representatives Pete Sessions (TX) and Andy Harris (MD) led opposition, but only six of 35 Republican appropriations committee members signed their letter against rescheduling.

What Schedule III means:

IRC Section 280E tax relief for state-licensed cannabis businesses.
Enhanced medical research capabilities.
Potential Medicare/Medicaid coverage for medical marijuana.
Federal-state policy alignment progress.

Trump signed the executive order December 18, 2025 directing his Attorney General to reclassify cannabis. Exact timeline unclear but anticipated completion in 2026.

Read the appropriations bill →

Key Compliance Deadlines

January 26, 2026: Texas public comment period ends on hemp licensing fee increases

April 13, 2026: New Jersey inventory liquidation deadline for non-beverage hemp products; intoxicating hemp beverage sales restricted to licensed alcohol retailers and CRC cannabis businesses

July 1, 2026: Tennessee hemp regulations take effect

November 12, 2026: Federal hemp ban effective (unless Hemp Planting Predictability Act extends to 2028)

November 13, 2026: New Jersey prohibits intoxicating hemp beverages except at Class 5 cannabis retailers

Action Steps

Hemp Businesses - Do This Now:

Submit public comment to Texas DSHS by January 26th opposing fee increases.
Audit products for synthetic cannabinoids and total THC levels.
Contact Representatives supporting the Hemp Planting Predictability Act.
Execute liquidation strategies in New Jersey by April 13th.
Budget for compliance costs (testing, software, labeling, potential FDA registration).

Cannabis Businesses:

Track New Hampshire HB 186 for adult-use market opportunities.
Prepare for IRC Section 280E tax relief if rescheduling proceeds.
Evaluate New Jersey for hemp product integration post-November.
Strengthen compliance programs for enhanced federal oversight under Schedule III.

Patients and Consumers:

Verify CBD products meet federal limits (0.3% total THC, 0.4mg per container). Transition away from delta-8, HHC, THC-O before federal ban. Purchase compliant products before state deadlines.

Industry Advocates:

Support Hemp Planting Predictability Act as immediate relief. Engage with Cannabinoid Safety and Regulation Act as long-term framework. Mobilize Texas public comment against prohibitive fees. Distinguish legitimate CBD/hemp industry from synthetic manufacturers. Emphasize economic impact: $28.4B industry, 300,000 jobs.

The Bottom Line

Congress recognizes the federal hemp ban's unintended consequences, with bipartisan legislation offering a two-year reprieve. The Hemp Planting Predictability Act and Cannabinoid Safety and Regulation Act represent two paths forward: delay plus comprehensive policy development, or immediate transition to FDA-centered regulation.

State responses vary wildly. Texas uses prohibitive fees as backdoor prohibition. New Jersey phases out hemp sales over ten months while expanding cannabis license caps. Tennessee delays implementation awaiting federal clarity. New Hampshire advances toward adult-use legalization.

The hemp industry faces an existential moment requiring immediate Congressional advocacy, strategic state engagement, and rapid business adaptation. Take Action With AHAA

Hemp and cannabis policy affects patients, businesses, farmers, and communities nationwide. AHAA's Action Center empowers you to engage directly with policymakers.

Visit AHAA Action Center →